Real Digital Currency

What is real digital currency?

Real digital currency, is nothing more than the digital version of our real. Initially, some people classified this virtual currency as a cryptocurrency, but in fact, it is not, and it differs greatly from Bitcoin, for example.

According to the plans of the Central Bank of Brazil, our virtual currency will be launched by 2024, but the expectation and hope is that it will begin operating before that date.

Although it has not yet been launched, some information about it has already been made available. However, many mysteries and uncertainties still surround this currency and will only be discovered when it goes into operation.

Currently, it is already possible to know how it will work, but during this period, many changes can still occur.

As the real digital currency will it work?

This virtual currency will have the same value in our physical real, it is not volatile like the cryptocurrencies, for example. It will simply follow the value of our real.

Furthermore, it is classified as a CBDC (Central Bank Digital Currency), CBDC is the name given to digital currencies issued and managed by the central bank of a given country.

Currently, the only country that already has its own digital currency in full operation is the Bahamas, however, China is already carrying out advanced tests.

In addition, France, Uruguay and the United States are also discussing the possibility of launching a virtual version of their currency.

After the acquisition of the real digital currency, the citizen will not be able to convert the amount into bills, as we already do with cash withdrawals.

Therefore, the currency should only be used in a virtual environment, through codes generated by the Central Bank of Brazil, which will inform the value of each currency.

The purpose of Bacen is that the digital real becomes popular and is easily accepted by Brazilians to the point of being used routinely.

As a result of the popularization and innovation of electronic payments, the use of paper money is falling every day, and the trend is certainly to fall even further.

According to data from The Global Payments Report in 2020, only 35% of global financial transactions were carried out in cash.

Furthermore, the institution also predicts that by 2023, “cash” will be the least used payment method by consumers around the world.

Certainly, the real digital currency It will be an innovation and easily accepted by Brazilians.

What is the difference between the real digital currency and cryptocurrencies?

As already mentioned, the digital real is not a cryptocurrency, therefore, there are many clear differences between them.

For example, cryptocurrencies have characteristics of an investment, as they are volatile. That is, their value can rise and fall in a matter of seconds.

Furthermore, they are decentralized, meaning they are private initiatives and are not under the control of any bank or financial institution.

THE real digital currency, in turn, will be issued by the Central Bank, as it will be backed by our currency, the real. Not to mention, it poses no risk, for example, of you losing it or having its value diminished.

Although they are regulated by the Central Bank, they will be distributed through financial institutions, banks and other components of current payment systems.

What are the possible benefits?

The popularization of the digital real will reduce the issuance of paper money, which will reduce the costs involved in producing banknotes and also the exploitation of raw materials.

Furthermore, this currency can also inhibit money laundering, make life easier and simpler for Brazilians, result in lower transaction costs, and encourage financial inclusion.

Conclusion

That the real digital currency can impact the lives of Brazilians, we have no doubt. However, will these impacts be positive or negative? Or perhaps more one way than the other.

Avid financial enthusiasts believe that this currency represents a significant step forward for the country's economy.

In addition to following new market trends, it will promote integration, is safe and will reduce costs, thus giving more financial freedom for Brazilians.

For now, we can only wait. To stay up-to-date on this topic, be sure to check our blog regularly, as we'll update our content as soon as it's released.

By: Nara updated ago 1 year back